13 December 2013

Blog post: The Rise of Bitcoin

Back in March 2013, Bitcoin reached an
all-time trading high of more than £21. At that time, this was seen as a major
development for the alternative currency which was launched in 2009, largely
unnoticed outside the crypto-currency world. Since then, the situation has
changed dramatically. What was seen as hype in March has now developed into a
frenzy.

By the beginning of April, one Bitcoin
was already worth £150. And since a US Senate committee hearing in November
backed Bitcoin as a legitimate financial service, its value really took off:
following a peak of £755 on 5 December, it is currently trading at around £550.

Why has Bitcoin some attractive so
quickly? How exactly does Bitcoin work? And how do regulators see the currency?
Here are some facts which describe what Bitcoin is - and what it’s not.